August Unemployment Rate Fell to 8.1% because 368,000 People Left the Labor Force
Posted by FactReal on September 7, 2012
|Unemployment rate fell 0.2% (from 8.3% to 8.1%) because fewer Americans are looking for work, not because more Americans are finding jobs|
|Source: Bureau of Labor Statistics – August 2012 employment report (Released September 7, 2012)|
|HIGHLIGHTS OF THE LABOR REPORT FOR AUGUST 2012 (Released on 9/7/2012)
Sources: Bureau of Labor Statistics, Wall Street Journal, Sweetness & Light, AEI
|The Wall Street Journal explains:
Employment report based on 2 surveys: (BLS)
● The household survey (a.k.a. Current Population Survey) provides information on the labor force, employment, and unemployment that appears in the “A” tables, marked HOUSEHOLD DATA. It is a sample survey of about 60,000 eligible households conducted by the U.S. Census Bureau for the U.S. Bureau of Labor Statistics (BLS).
● The establishment survey (a.k.a. Current Employment Statistics Survey) provides information on employment, hours, and earnings of employees on nonfarm payrolls; the data appear in the “B” tables, marked ESTABLISHMENT DATA. BLS collects these data each month from the payroll records of a sample of nonagricultural business establishments. Each month the CES program surveys about 141,000 businesses and government agencies, representing approximately 486,000 individual worksites, in order to provide detailed industry data on employment, hours, and earnings of workers on nonfarm payrolls. The active sample includes approximately onethird of all nonfarm payroll employees.
U-6: Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor.
The official unemployment rate exclude people who have stopped looking for work. The unemployment rate is calculated by dividing the number of unemployed by the total number of people in the labor force. WSJ: “The unemployment rate is calculated based on the number of unemployed — people who are without jobs, who are available to work and who have actively sought work in the prior four weeks. The “actively looking for work” definition is fairly broad, including people who contacted an employer, employment agency, job center or friends; sent out resumes or filled out applications; or answered or placed ads, among other things.”
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